BRICS challenges U.S. dollar, can it have an impact on Bitcoin as well?
- Bitcoin may be thrust into unchartered territory as BRICS challenges the U.S. dollar.
- Assessing the potential outcome for Bitcoin if BRICS succeeds.
An interesting thing is happening in the global arena and it might just be one of the major factors that may influence Bitcoin demand later this year. A battle is being waged against the dollar and this might challenge its global reserve status.
How many are 1,10,100 BTCs worth today?
Geopolitical tensions are also taking the battle to the economic front. Russia and China are in joint efforts to roll out a new common global currency called BRICS in alliance with numerous other nations.
Geopolitical tensions are also taking the battle to the economic front with BRICS as an alternative for the dollar. This development can potentially cause a massive impact globally but what does this mean for Bitcoin?
If BRICS catches on and manages to attract more countries, then the U.S. dollar might lose its grip as the global reserve currency.
Such an outcome can potentially put the dollar on the fast lane to lose even more value. Bitcoin might enjoy higher demand as people embrace other means of holding value.
The USD may also face more pressure and less demand from investors due to the current debt situation and recession fears.
Meanwhile, Bitcoin is about to conclude a bullish first month of 2023. And so far those addresses that have been buying seem to be holding on to their coins. Glassnode Alerts confirmed this about Bitcoin supply activity;
📈 #Bitcoin $BTC Amount of Supply Last Active 1d-1w (1d MA) just reached a 1-month high of 490,925.339 BTC
Previous 1-month high of 489,165.093 BTC was observed on 23 January 2023
View metric:https://t.co/8VrSovS3cQ pic.twitter.com/wkSBnBxxeF
— glassnode alerts (@glassnodealerts) January 29, 2023
Bitcoin’s volatility index pivoted in favor of the upside since 20 January. This suggests that Bitcoin might be headed for more volatile price movements at the start of February.
The resurgence of confidence in Bitcoin bulls is perfectly timed to absorb some of the liquidity from the greenback outflows.
Bitcoin has so far demonstrated resilience against the downside. Its latest rally confirms the strong demand and low sell pressure as investors opt to hold on to their coins.
This allowed BTC to push closer to the $24,000 price range. It traded at $23750 at press time.
Can BRICS take advantage of Bitcoin from a blockchain perspective?
There have been reports claiming that banks in BRICS member states are exploring potential blockchain implementation.
While this may still be within the realm of speculation, it might be a strong move for BRICS member countries.
This is good news for Bitcoin because it will underscore robust efficiency and speed. It would not only offer BRICS a competitive advantage but also make it easier to use as a reserve.
Not going the blockchain route will likely put BRICS at a disadvantage now that more countries are exploring this technology.
BTC may get to interact with BRICS on its home turf. The potential implications may turn out quite interesting, especially for Bitcoin’s long-term outlook.